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Property, plant and equipment
 12 Months Ended
Dec. 31, 2019
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Property, plant and equipment
8
Property, plant and equipment
Changes in the carrying amount of property, plant and equipment and accumulated depreciation for the years ended December 31, 2019 and 2018 are analysed in the following tables.
 
 
  
Land
and
buildings
 
  
Machinery
and
equipment
 
  
Office
furniture
and
equipment
 
  
Retail
gallery
and store
furnishing
 
  
Leasehold
improvements
 
  
Constr.
in
progress
 
  
Total
 
Cost as at December 31, 2017
  
 
169,273
 
  
 
132,240
 
  
 
15,412
 
  
 
32,586
 
  
 
19,450
 
  
 
272
 
  
 
369,233
 
Additions
  
 
646
 
  
 
2,320
 
  
 
365
 
  
 
881
 
  
 
2,288
 
  
 
660
 
  
 
7,160
 
Disposals
  
 
(27
) 
  
 
(7,905
) 
  
 
(725
) 
  
 
(20,329
) 
  
 
(917
) 
  
 
—  
 
  
 
(29,903
) 
Effect of translation adj.
  
 
153
 
  
 
(301
) 
  
 
27
 
  
 
356
 
  
 
(85
) 
  
 
(20
) 
  
 
130
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Cost as at December 31, 2018
  
 
170,045
 
  
 
126,354
 
  
 
15,079
 
  
 
13,494
 
  
 
20,736
 
  
 
912
 
  
 
346,620
 
Additions
  
 
560
 
  
 
1,510
 
  
 
126
 
  
 
285
 
  
 
1,671
 
  
 
38
 
  
 
4,190
 
Disposals
  
 
(3
) 
  
 
(522
) 
  
 
(114
) 
  
 
(4
) 
  
 
—  
 
  
 
—  
 
  
 
(643
) 
Reclassifications
  
 
—  
 
  
 
183
 
  
 
—  
 
  
 
—  
 
  
 
545
 
  
 
(728
) 
  
 
—  
 
Effect of translation adj.
  
 
213
 
  
 
(60
) 
  
 
32
 
  
 
(43
) 
  
 
423
 
  
 
33
 
  
 
598
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Cost as at December 31, 2019
  
 
170,815
 
  
 
127,465
 
  
 
15,123
 
  
 
13,732
 
  
 
23,375
 
  
 
255
 
  
 
350,765
 
 
 
  
Land
and
buildings
 
 
Machinery
and
equipment
 
 
Office
furniture
and
equipment
 
 
Retail
gallery
and store
furnishing
 
 
Leasehold
improvements
 
 
Constr.
in
progress
 
  
Total
 
Accumulated depreciation as
at December 31, 2017
  
 
(81,888
) 
 
 
(114,485
) 
 
 
(14,252
) 
 
 
(31,821
) 
 
 
(11,597
) 
 
 
—  
 
  
 
(254,043
) 
Depreciation
  
 
(4,018
) 
 
 
(3,381
) 
 
 
(204
) 
 
 
(140
) 
 
 
(2,411
) 
 
 
—  
 
  
 
(10,154
) 
Disposals
  
 
23
 
 
 
7,588
 
 
 
369
 
 
 
20,060
 
 
 
501
 
 
 
—  
 
  
 
28,541
 
Effect of translation adj.
  
 
(100
) 
 
 
484
 
 
 
4
 
 
 
(357
) 
 
 
91
 
 
 
—  
 
  
 
122
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Accumulated depreciation as
at December 31, 2018
  
 
(85,983
) 
 
 
(109,794
) 
 
 
(14,083
) 
 
 
(12,258
) 
 
 
(13,416
) 
 
 
—  
 
  
 
(235,534
) 
Depreciation
  
 
(3,984
) 
 
 
(3,221
) 
 
 
(381
) 
 
 
(535
) 
 
 
(2,848
) 
 
 
—  
 
  
 
(10,969
) 
Disposals
  
 
—  
 
 
 
462
 
 
 
112
 
 
 
3
 
 
 
—  
 
 
 
—  
 
  
 
577
 
Effect of translation adj.
  
 
(2,338
) 
 
 
(1,120
) 
 
 
66
 
 
 
(206
) 
 
 
1,282
 
 
 
—  
 
  
 
(2,316
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Accumulated depreciation as
at December 31, 2019
  
 
(92,305
) 
 
 
(113,673
) 
 
 
(14,286
) 
 
 
(12,996
) 
 
 
(14,982
) 
 
 
—  
 
  
 
(248,242
) 
        
Net book value as at December 31, 2017
  
 
87,385
 
 
 
17,755
 
 
 
1,160
 
 
 
765
 
 
 
7,853
 
 
 
272
 
  
 
115,190
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Net book value as at December 31, 2018
  
 
84,062
 
 
 
16,560
 
 
 
996
 
 
 
1,236
 
 
 
7,320
 
 
 
912
 
  
 
111,086
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Net book value as at December 31, 2019
  
 
78,510
 
 
 
13,792
 
 
 
837
 
 
 
736
 
 
 
8,393
 
 
 
255
 
  
 
102,523
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
    
  
   
 
   
 
   
 
   
 
   
 
   
  
   
Annual rate of depreciation for
2019 and 2018
  
 
0%-10%
 
 
 
10%-25%
 
 
 
10%-20%
 
 
 
25%-35%
 
 
 
10%-20%
 
 
 
—  
 
  
   
As at December 31, 2019, properties with a carrying amount of 47,865 (as at December 31, 2018 26,932) are subject to registered mortgages to guarantee the long-term borrowings (see note 19).
The following tables show property, plant and equipment by country.
 
 
  
31/12/19
 
  
31/12/18
 
Italy
  
 
57,035
 
  
 
61,271
 
Romania
  
 
19,831
 
  
 
23,406
 
United States of America
  
 
17,800
 
  
 
17,830
 
Brazil
  
 
4,250
 
  
 
4,552
 
China
  
 
2,334
 
  
 
2,562
 
Europe
  
 
1,260
 
  
 
1,463
 
Other countries
  
 
13
 
  
 
2
 
 
  
 
 
 
  
 
 
 
Total
  
 
102,523
 
  
 
111,086
 
 
  
 
 
 
  
 
 
 
As at December 31, 2019 and 2018, the carrying amount of property, plant and equipment not in use is of 10,468 and 10,795, respectively. The Company plans to sell such assets in the next years.
In 2019 and 2018, the Company performed an impairment test in accordance with its accounting policy over those property, plant and equipment for which events and changes in circumstances indicated that the carrying amount of certain assets or Cash Generating Units (CGUs) may not be recoverable.
For property, plant and equipment in use, the Company determined the recoverable amount as value in use using the discounted cash flow method, at the lowest level for which identifiable cash flows are independent of other cash flows, and compared it with the carrying value. Cash flow projections have been derived from the budget approved by the Board of Directors. Forecasts have been developed taking into consideration the track records of actual results reported by the Company.
 
For property, plant and equipment not in use, the fair value less costs to sell was estimated through independent third-party appraisals, which assessed the fair value of land and buildings using the comparable market method and assessed the fair value of machinery and equipment using the depreciated replacement cost method, adjusted for an obsolescence rate and a marketability rate.
As a result of the 2019 and 2018 impairment review of the Company’s property, plant and equipment, no impairment losses have emerged.